Feeds

Google accused of UK tax dodge

UK tax bill? No results

High performance access to file storage

Search giant Google has been accused of avoiding UK tax by routing most of its earnings through Ireland.

This means it saves about £100m a year by paying Irish corporation tax at 12.5 per cent rather than the 28 per cent it would face in the UK.

British advertisers send their money to Google's Irish subsidiary, an arrangment described as unfair and unacceptable.

This means that even though Google UK turned over £1.25bn in the UK it paid only £600,000 in UK corporation tax - 90 per cent of its earnings were channeled through Ireland.

Richard Murphy, who did the research for the Sunday Times, called on Her Majesty's Revenue and Customs to tax Google on its UK turnover as if it were running a UK branch.

A Google spokesman said: "Google complies fully with the tax requirements in all the countries in which we operate. In the UK and elsewhere we make a very substantial contribution to local and national taxation. In addition, we provide employment for hundreds of people in the UK and many more across Europe."

Google has close links with the Tory party - Eric Schmidt sits on their economic recovery committee and Google's chief spin doctor is ex-Tory spinner Rachel Whetstone.

Several companies have faced similar accusations including Tesco and of course the owner of the Sunday Times, News International. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.